2022 is a challenging year, while the recovery from Covid-19 has just begun, another big problem of Ukraine-Russia War comes. It is no longer about an invasion between the two countries, but about affecting economies around the world. Russia's full-scale invasion of Ukraine began on February 24, 2022 and has added to growing concerns about a sharp global economic slowdown, a surge in global inflation and debt, and a resulting rise in levels of poverty, according to the World Bank in 2022. recent updates on the economy. Say no to plagiarism. Get a tailor-made essay on "Why Violent Video Games Shouldn't Be Banned"? Get an original essay. But many studies on the economic effects following the Ukraine-Russia war are still missing. However, Peterson K. Ozili, in an article published in the SSRN Electronic Journal (May 2022) clearly stated that the war has a direct impact on the global economy. The Ukrainian-Russian invasion has had spillover effects on the global economy through disruption of the global supply chain. Energy, raw material and food prices are rising sharply, leading to a drastic increase in global inflation. Also affected is Malaysia, located more than 5,000 miles or more than 8,200 kilometers from Ukraine. The logistics company I currently work with is a global brand of logistics service providers, born in Japan. The main business in Malaysia is air freight consolidation, trucking, ocean freight, warehousing and distribution services. When it comes to international cargo and transportation, we cannot escape its fate, which has been affected by it. Due to the war, the price of fuel rose dramatically, exceeding 100 dollars a barrel. At the beginning of March, Brent crude oil even reached $130 a barrel. As the price of fuel increases, the fuel rate for international transportation also increases at the same time. The cost of operation becomes higher than ever and the sales and marketing team faces the challenge of selling at a higher freight rate. If you sell at the old freight rate, trade deals will have a deficit. Since the outbreak of the Ukraine–Russia War, a number of restrictions on transportation through Russia and Ukraine have been introduced. Russian airspace is closed to 36 countries. In response to Russia's invasion of Ukraine, several countries have taken measures to limit the operation of Russian Airlines, exacerbating the shortage of cargo space on the European route. At the same time, parts of the Black Sea and the Sea of ​​Azov are impassable and dangerous for ships. Cases of missile attacks on ships and closures of commercial shipping lanes have been reported. Even though I am the human resources of the company, I have the chance to expose how our team overcomes these challenges through the words of our sales manager, Miss Chong Chai Hun who worked closely with the operations team and company counterpart . He revealed that the war had an immediate impact and a long-term impact on our operations and activities in Malaya. A brief business impact analysis is underway, led by the Air Transport Product Manager. Business impact analysis measures the impact in the event of such a disruption. From here, we seek to identify recovery priorities, necessary resources, and departmental personnel to deliver and support the activation of the business continuity plan. The business impact analysis revealed that although the percentage of sales revenue coming from the European channel is approximately10% of total sales revenue for our offices in Malaysia, the impact is evident in terms of lost sales revenue, delivery delays and increased costs (example: staff overtime, increased cost of fuel surcharge, terminal fee ), potential customer dissatisfaction and delay in the commercial expansion plan for the Europe route. Soon after the war began, our company was unable to send shipments to European areas, and services were subsequently suspended especially for air cargo. This situation continued for almost two to three weeks. The usual routes for all planes flying to Europe from Asia pass through the celestial space of Ukraine. Due to the war, many carriers such as ANA and FEDEX stop flying to Europe, while SQ Airlines canceled the flight to Denmark when the initial phase of the war began. Some carriers continue to fly but reduce their trips to European countries. As a result, carrier capacity to Europe is shrinking. With the limited supply available, the freight rate is increasing dramatically. The turnover is therefore significantly influenced for the Europe business line. Sales revenue for the Europe lane averages 10% of total sales revenue per month. Since the Ukrainian-Russian invasion in early 2022, turnover has been less than 7.5% of total turnover. At the same time, the freight operations division was hit. Some customers have decided to hold back shipments to further observe the unpredictable invasion. Some requests for other delivery alternatives. Incoming shipments will need to be rerouted or transited or even switched to another mode of transportation to avoid the usual route to Europe. Additionally, the operation engaged carriers with “locked space agreements” (BSAs). The inability to sell the used blocked space means that the company will incur a fixed cost. Imagine, no shipments delivered but still having to bear operating costs. Take our KLIA operation for example, we have committed around 40 tonnes per month to the BSA for the European lane. Nobody knows when the war will end. From a long-term perspective, the war caused uncertainty in business. The skyrocketing price of fuel has directly impacted operating costs. Sales staff had difficulty selling freight space due to the high rate of fracked fuel. The existing sales contract was no longer applicable. If applied blindly to the existing contract rate, trade agreements will affect the profit margin and, worse, have losses in terms of figures. The war also influenced the plan of our offices in Malaysia to expand the European (air transport) lane in these three to six months. . Shippers must observe and evaluate the potential risk before deciding to move shipments. Risks to consider are the potential risk of cargo delay, cargo damage during the delivery process, risk of cargo loss due to transit and rescheduling of cargo at transit ports, etc. despite having to bear the high transport costs. It is generally expected that the invasion will take a longer period to resolve, international trade with Europe will slow down. Dealing with this sudden tragedy is not an individual departmental issue. The department cannot act in SILO to get a turnaround from the situation. Of the three key functions of the organization, Sales, Marketing and Operations are working closely together to address the challenges, for the fastest business recovery according to BusinessCompany Continual Planning (BCP). The goal of continuous business planning is to minimize disruption and mitigate risks to operations and ensure that our business remains viable during the outbreak of unforeseen circumstances. The contingency process is activated as a precautionary measure, to mitigate the risks of loss of customer trust and loss of business. In between, crisis communication is crucial and must be implemented immediately, promptly and accurately. In such an emergency, the customer will want to know what the consequences will be, what the cargo delivery status will be, and so on. We are proud that we were able to weather the disruption with minimal impact to our offices in Malaysia. During the initial period of the incident, all shipments to Europe experienced delays in the delivery process, either in moving local delivery to export, in frying goods to from Europe, or held at the halfway transit point on the route to from Europe. The freight operations team and the customer service team will need to obtain first-hand information on the suspension of the carrier's delivery, information on delays in delivery, real-time information related to disruptions in the counterparty's operations, and inform customers (shippers and consignees) on the progress of cargo delivery as soon and promptly as possible. We clearly understand that the cost associated with service failures is much higher than the average citizen might expect. Failure to respond to customers will lead to loss of trust and customers will not return in the future. Therefore, information is shared with all stakeholders both internal and external using Global I-net and escalation of customer advice by posting on the KWE Group website, via email, fax and also phone calls. Even if they get less and less For carriers flying to Europe, the operations team, despite the absence of shipment movements, began looking for alternative carriers that would continue to fly. Of course, while we are so reactive, other competitors behave the same way, competing to secure the limited space to move loads. The freight rate has increased and in order to deal with the price increase, sales and marketing will have to deal with the customer to update the problem and the increase in freight costs and try to convince the customer to accept the new quotation to move cargo to Europe. Everything must be done quickly. If we delay in acting, we will lose the opportunity to guarantee the competitor the limited space available for cargo to be moved in Europe. The situation gradually improves as airlines and carriers come up with new rerouted routes, new delivery points and avoid flying across the border. Airspaces of Russia and Ukraine. The new routes to Europe are further away than the usual route. Shipments from Malaysia to Europe fly eastward to Japan and the transit point in Anchorage, Alaska, then to Europe avoiding Russia, or fly westward through Turkey's airspace, a more southern route, to Europe avoiding Ukraine. A clear picture as per Appendix 2. Both new routes will require longer distance and flight time. It is more expensive as fuel surcharges are imposed on carriers. It is cheaper to fly using the western route. Again, our freight business has strong competition in securing freight space. Although carriers resume flying to Europe, most countries are facing a situation characterized by a large backlog and.